Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Listing and Trading of the iShares Gold Strategy ETF, a Series of the iShares U.S. ETF Trust, 24541-24543 [2018-11356]
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Federal Register / Vol. 83, No. 103 / Tuesday, May 29, 2018 / Notices
Notice are consistent with Rule 17Ad–
22(e)(6) under the Exchange Act, which
requires that OCC establish, implement,
maintain, and enforce written policies
and procedures reasonably designed to
cover its credit exposures to its
participants by establishing a risk-based
margin system that, among other things:
(i) Considers, and produces margin
levels commensurate with the risks and
particular attributes of each relevant
product, portfolio, and market; (ii)
calculates margin sufficient to cover its
potential future exposure to participants
in the interval between the last margin
collection and the close out of positions
following a participant default; and (iii)
uses reliable sources of timely price data
and uses procedures and sound
valuation models for addressing
circumstances in which pricing data is
not readily available or reliable.107
As described above, the proposal
contained in the Advance Notice would
make several amendments to OCC’s
margin methodology designed to
improve how it: (i) Accounts for
asymmetry in conditional variance; 108
(ii) models the statistical distribution of
price returns; 109 (iii) models second-day
volatility forecasts; 110 (iv) estimates
covariance and correlations between
risk factors to provide for stable and
sensitive correlation estimations; 111 and
(v) treats defaulting securities by
reducing the impact that illiquid
securities with discontinuous data have
on default variance estimates.112
The Commission believes the
modifications proposed are designed to
improve the manner in which STANS
would calculate daily margin
requirements for OCC’s clearing
members. Consequently, the
Commission believes that the proposal
is designed both (i) to consider, and
produce margin levels commensurate
with, the risks and particular attributes
of each relevant product, portfolio, and
market 113 and (ii) to calculate margin
sufficient to cover OCC’s potential
future exposure to participants in the
interval between the last margin
collection and the close out of positions
following a participant default.114
Additionally, as discussed in the
Advance Notice,115 the proposal would
introduce daily updates for price data
107 17
CFR 240.17AD–22(e)(6).
Notice of Filing of Advance Notice, 82 FR
at 61357.
109 Id.
110 Id.
111 Id.
112 See Notice of Filing of Advance Notice, 82 FR
at 61357–61358.
113 See 17 CFR 240.17Ad–22(e)(6)(i).
114 See 17 CFR 240.17Ad–22(e)(6)(iii).
115 See Notice, 82 FR at 61356.
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108 See
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16:39 May 25, 2018
Jkt 244001
for equity products. This data would be
obtained from a reliable industry
vendor. Consequently, the Commission
believes that the proposal contained in
the Advance Notice would help ensure
that OCC’s margin methodology would
utilize a reliable source of timely price
data, which would better reflect current
market conditions than the current
monthly updates, and thereby result in
more accurate and responsive margin
requirements.116 Consequently, the
Commission finds that the proposal is
consistent with Exchange Act Rule
17Ad–22(e)(6).
V. Conclusion
It is therefore noticed, pursuant to
Section 806(e)(1)(I) of the Payment
Supervision Act,117 that the
Commission does not object to Advance
Notice (SR–OCC–2017–811) and that
OCC is authorized to implement the
proposed change.
By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–11454 Filed 5–25–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83302; File No. SR–
CboeBZX–2018–034]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating to the
Listing and Trading of the iShares
Gold Strategy ETF, a Series of the
iShares U.S. ETF Trust
May 22, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 9,
2018, Cboe BZX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii) 4
thereunder, which renders it effective
upon filing with the Commission. The
116 See
17 CFR 240.17Ad–22(e)(6)(iv).
U.S.C. 5465(e)(1)(G).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
117 12
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24541
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend a representation made in a rule
change previously approved by the
Commission relating to the listing and
trading of the iShares Gold Strategy ETF
(the ‘‘Fund’’), a series of the iShares U.S.
ETF Trust (the ‘‘Trust’’).
The text of the proposed rule change
is available at the Exchange’s website at
www.markets.cboe.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The shares of the Fund (the ‘‘Shares’’)
were approved for listing and trading on
the Exchange under Exchange Rule
14.11(i), which governs the listing and
trading of Managed Fund Shares.5 The
Shares have not yet commenced trading
on the Exchange. The Fund is a series
of the Trust, which was established as
a Delaware statutory trust on June 21,
2011. BlackRock Fund Advisors (the
‘‘Adviser’’) will serve as the investment
adviser to the Fund. The Trust is
registered with the Commission as an
open-end management investment
company and has filed a registration
statement on behalf of the Fund on
Form N–1A (‘‘Registration Statement’’)
with the Commission.6
5 See Securities Exchange Act Release No. 83014
(April 9, 2018), 83 FR 16150 (April 13, 2018) (SR–
CboeBZX–2017–023) (the ‘‘Approval Order’’).
6 See Registration Statement on Form N–1A for
the Trust, filed with the Commission on November
1, 2017 (File Nos. 333–179904 and 811–22649). The
descriptions of the Fund and the Shares contained
herein are based, in part, on information in the
E:\FR\FM\29MYN1.SGM
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29MYN1
24542
Federal Register / Vol. 83, No. 103 / Tuesday, May 29, 2018 / Notices
The Exchange proposes to amend the
Approval Order in order to make clear
that the representation that limits Fund
holdings in the Subsidiary 7 to 25% of
the Fund’s total assets (the ‘‘25%
Limitation’’) was made to indicate that
the Fund will comply with Sub-Chapter
M of the Internal Revenue Code of 1986,
as amended (the ‘‘Internal Revenue
Code’’), and as such, the 25% Limitation
was intended to be measured on a
quarterly basis. Specifically, the
Exchange is proposing to change the
sentence that reads:
References below to the holdings of the
Fund, including any restrictions thereon that
are described within this proposal, are
inclusive of the direct holdings of the Fund
as well as the indirect holdings of the Fund
through the Subsidiary, which may
constitute up to 25% of the total assets of the
Fund.
The Exchange is proposing to replace
that sentence with the following:
References below to the holdings of the
Fund, including any restrictions thereon that
are described within this proposal, are
inclusive of the direct holdings of the Fund
as well as the indirect holdings of the Fund
through the Subsidiary, which, in
compliance with Sub-Chapter M of the
Internal Revenue Code of 1986, as amended,
may constitute up to 25% of the total assets
of the Fund, as determined at the end of each
of the Fund’s fiscal quarters.
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The Exchange believes that this
proposed change is a non-controversial
change because it is only to clarify that
the 25% Limitation is measured on a
quarterly basis in compliance with SubChapter M of the Internal Revenue
Code. This proposed change regarding
the 25% Limitation is the only change
covered by this proposal, and all other
representations in the Approval Order,
including both initial listing
requirements and Continued Listing
Representations,8 remain true and will
apply on a continuous basis, as
applicable, consistent with Exchange
Rule 14.11.
Registration Statement. The Commission has issued
an order granting certain exemptive relief to the
Adviser and open-end management companies
advised by the Adviser under the Investment
Company Act of 1940 (15 U.S.C. 80a–1). See
Investment Company Act Release No. 29571
(January 24, 2011) (File No. 812–13601).
7 The ‘‘Subsidiary’’ is a wholly owned subsidiary
of the Fund that is organized in the Cayman Islands
and has the same investment objective as the Fund.
8 As defined in Rule 14.11(a), the term
‘‘Continued Listing Representations’’ means any of
the statements or representations regarding the
index composition, the description of the portfolio
or reference assets, limitations on portfolio holdings
or reference assets, dissemination and availability
of index, reference asset, and intraday indicative
values (as applicable), or the applicability of
Exchange listing rules specified in any filing to list
a series of securities under Rule 14.11.
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16:39 May 25, 2018
Jkt 244001
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act 9 in general and Section
6(b)(5) of the Act 10 in particular in that
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of, a free and
open market and, in general, to protect
investors and the public interest.
As described above, all of the
Continued Listing Representations
which formed the basis for the
Commission in approving the Approval
Order remain true and will continue to
constitute listing requirements for the
Fund with the exception of the single
representation that the Exchange is
proposing to make clearer. This
proposed change will only make clear
the basis for and timing of the
calculation of the 25% Limitation and is
not proposing to make any substantive
changes to the types or amounts of any
particular instrument that the Fund can
hold. As such, the Exchange believes
that the proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that making clear the
timing of the calculation of and the
basis for the 25% Limitation will have
no impact on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15
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Frm 00086
Fmt 4703
Sfmt 4703
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 13 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 14
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. The Commission
notes that waiver of the 30-day
operative delay will allow the Fund to
immediately operate under the certainty
of the application of the 25% Limitation
proposed in this proposal and provide
the same clarity to investors. The
Commission does not believe that there
is any reason for delay when the
proposal is only designed to make clear
that the 25% Limitation will be
measured on a quarterly basis and is
designed to comply with Sub-Chapter M
of the Internal Revenue Code.
Accordingly, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest and
hereby waives the operative delay and
designates the proposed rule change
operative upon filing.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
12 17
E:\FR\FM\29MYN1.SGM
29MYN1
Federal Register / Vol. 83, No. 103 / Tuesday, May 29, 2018 / Notices
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeBZX–2018–034 on the subject line.
Paper Comments
daltland on DSKBBV9HB2PROD with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeBZX–2018–034. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CboeBZX–2018–034, and
should be submitted on or before June
19, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
16:39 May 25, 2018
Jkt 244001
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[FR Doc. 2018–11356 Filed 5–25–18; 8:45 am]
[Release No. 34–83306; File No. SR–ISE–
2018–46]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Schedule
of Fees Related to Complex Orders
May 23, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 10,
2018, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Schedule of Fees related to Complex
Orders traded on the Exchange.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.cchwallstreet.com/, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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24543
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The purpose of the proposed rule
change is to amend the Schedule of Fees
related to Complex Orders traded on the
Exchange, including: (1) Priority
Customer 3 Complex Order rebates, (2)
Market Maker 4 fees, (3) the non-Priority
Customer Complex Order taker
surcharge, and (4) formatting and other
non-substantive changes to the tables.
Each of the proposed changes is
described in more detail below.
I. Priority Customer Complex Order
Rebates
Currently, the Exchange has a fee
structure in place for Complex Orders
that provides rebates to Priority
Customer Complex Orders in order to
encourage Members to bring that order
flow to the Exchange. Specifically,
Priority Customer Complex Orders are
provided rebates in Select Symbols 5
and Non-Select Symbols 6 (other than
NDX and MNX) based on Priority
Customer average daily volume
(‘‘ADV’’) in eight tiers as shown in the
table below:7
3 A ‘‘Priority Customer’’ is a person or entity that
is not a broker/dealer in securities, and does not
place more than 390 orders in listed options per day
on average during a calendar month for its own
beneficial account(s), as defined in Nasdaq ISE Rule
100(a)(37A).
4 ‘‘Market Maker’’ refers to ‘‘Competitive Market
Makers’’ and ‘‘Primary Market Makers’’ collectively.
See ISE Rule 100(a)(28).
5 ‘‘Select Symbols’’ are options overlying all
symbols listed on the Nasdaq ISE that are in the
Penny Pilot Program.
6 ‘‘Non-Select Symbols’’ are options overlying all
symbols excluding Select Symbols.
7 The Priority Customer Complex Order rebates
are provided per contract per leg if the order trades
with non-Priority Customer orders in the Complex
Order Book or trades with quotes and orders on the
regular order book.
The rebate for the highest tier volume achieved
is applied retroactively to all eligible Priority
Customer Complex volume once the threshold has
been reached.
Members will not receive rebates for net zero
complex orders. For purposes of determining which
complex orders qualify as ‘‘net zero’’ the Exchange
will count all complex orders that leg in to the
regular order book and are executed at a net price
per contract that is within a range of $0.01 credit
and $0.01 debit.
E:\FR\FM\29MYN1.SGM
29MYN1
]]>Agencies
[Federal Register Volume 83, Number 103 (Tuesday, May 29, 2018)]
[Notices]
[Pages 24541-24543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11356]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83302; File No. SR-CboeBZX-2018-034]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to the Listing and Trading of the iShares Gold Strategy ETF, a Series
of the iShares U.S. ETF Trust
May 22, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 9, 2018, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Exchange has designated this
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)(iii) \4\
thereunder, which renders it effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend a representation made in a
rule change previously approved by the Commission relating to the
listing and trading of the iShares Gold Strategy ETF (the ``Fund''), a
series of the iShares U.S. ETF Trust (the ``Trust'').
The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The shares of the Fund (the ``Shares'') were approved for listing
and trading on the Exchange under Exchange Rule 14.11(i), which governs
the listing and trading of Managed Fund Shares.\5\ The Shares have not
yet commenced trading on the Exchange. The Fund is a series of the
Trust, which was established as a Delaware statutory trust on June 21,
2011. BlackRock Fund Advisors (the ``Adviser'') will serve as the
investment adviser to the Fund. The Trust is registered with the
Commission as an open-end management investment company and has filed a
registration statement on behalf of the Fund on Form N-1A
(``Registration Statement'') with the Commission.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 83014 (April 9,
2018), 83 FR 16150 (April 13, 2018) (SR-CboeBZX-2017-023) (the
``Approval Order'').
\6\ See Registration Statement on Form N-1A for the Trust, filed
with the Commission on November 1, 2017 (File Nos. 333-179904 and
811-22649). The descriptions of the Fund and the Shares contained
herein are based, in part, on information in the Registration
Statement. The Commission has issued an order granting certain
exemptive relief to the Adviser and open-end management companies
advised by the Adviser under the Investment Company Act of 1940 (15
U.S.C. 80a-1). See Investment Company Act Release No. 29571 (January
24, 2011) (File No. 812-13601).
---------------------------------------------------------------------------
[[Page 24542]]
The Exchange proposes to amend the Approval Order in order to make
clear that the representation that limits Fund holdings in the
Subsidiary \7\ to 25% of the Fund's total assets (the ``25%
Limitation'') was made to indicate that the Fund will comply with Sub-
Chapter M of the Internal Revenue Code of 1986, as amended (the
``Internal Revenue Code''), and as such, the 25% Limitation was
intended to be measured on a quarterly basis. Specifically, the
Exchange is proposing to change the sentence that reads:
---------------------------------------------------------------------------
\7\ The ``Subsidiary'' is a wholly owned subsidiary of the Fund
that is organized in the Cayman Islands and has the same investment
objective as the Fund.
References below to the holdings of the Fund, including any
restrictions thereon that are described within this proposal, are
inclusive of the direct holdings of the Fund as well as the indirect
holdings of the Fund through the Subsidiary, which may constitute up
---------------------------------------------------------------------------
to 25% of the total assets of the Fund.
The Exchange is proposing to replace that sentence with the
following:
References below to the holdings of the Fund, including any
restrictions thereon that are described within this proposal, are
inclusive of the direct holdings of the Fund as well as the indirect
holdings of the Fund through the Subsidiary, which, in compliance
with Sub-Chapter M of the Internal Revenue Code of 1986, as amended,
may constitute up to 25% of the total assets of the Fund, as
determined at the end of each of the Fund's fiscal quarters.
The Exchange believes that this proposed change is a non-
controversial change because it is only to clarify that the 25%
Limitation is measured on a quarterly basis in compliance with Sub-
Chapter M of the Internal Revenue Code. This proposed change regarding
the 25% Limitation is the only change covered by this proposal, and all
other representations in the Approval Order, including both initial
listing requirements and Continued Listing Representations,\8\ remain
true and will apply on a continuous basis, as applicable, consistent
with Exchange Rule 14.11.
---------------------------------------------------------------------------
\8\ As defined in Rule 14.11(a), the term ``Continued Listing
Representations'' means any of the statements or representations
regarding the index composition, the description of the portfolio or
reference assets, limitations on portfolio holdings or reference
assets, dissemination and availability of index, reference asset,
and intraday indicative values (as applicable), or the applicability
of Exchange listing rules specified in any filing to list a series
of securities under Rule 14.11.
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2. Statutory Basis
The Exchange believes that the proposal is consistent with Section
6(b) of the Act \9\ in general and Section 6(b)(5) of the Act \10\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to, and perfect the
mechanism of, a free and open market and, in general, to protect
investors and the public interest.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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As described above, all of the Continued Listing Representations
which formed the basis for the Commission in approving the Approval
Order remain true and will continue to constitute listing requirements
for the Fund with the exception of the single representation that the
Exchange is proposing to make clearer. This proposed change will only
make clear the basis for and timing of the calculation of the 25%
Limitation and is not proposing to make any substantive changes to the
types or amounts of any particular instrument that the Fund can hold.
As such, the Exchange believes that the proposal is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to remove impediments to, and perfect
the mechanism of, a free and open market and a national market system,
and, in general, to protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
making clear the timing of the calculation of and the basis for the 25%
Limitation will have no impact on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \13\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \14\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. The
Commission notes that waiver of the 30-day operative delay will allow
the Fund to immediately operate under the certainty of the application
of the 25% Limitation proposed in this proposal and provide the same
clarity to investors. The Commission does not believe that there is any
reason for delay when the proposal is only designed to make clear that
the 25% Limitation will be measured on a quarterly basis and is
designed to comply with Sub-Chapter M of the Internal Revenue Code.
Accordingly, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest and hereby waives the operative delay and designates
the proposed rule change operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
[[Page 24543]]
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeBZX-2018-034 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-CboeBZX-2018-034. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBZX-2018-034, and should be
submitted on or before June 19, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2018-11356 Filed 5-25-18; 8:45 am]
BILLING CODE 8011-01-P
